RBA: Further evidence that the beginning of the rate hike cycle is close – Westpac
|Analysts at Westpac offer their afterthoughts on the Reserve Bank of Australia’s (RBA) April meeting’s minutes, which fanned June rate hike expectations.
Key quotes
“Following the April Board meeting the Governor explicitly deleted reference to the Board being patient with its approach to policy. He also noted that “Over coming months important additional evidence will be available to the Board on both inflation and the evolution of labor costs.” That suggests to us that the Board will hold rates steady at the May meeting but be prepared to move at the next meeting on June 7.”
“Further evidence that the beginning of the rate hike cycle is close came in the Minutes to the April meeting where global inflation and the actions of other central banks, including the United States, were given much more emphasis than in past reports.”
“Westpac expects a lift of 15 basis points in the cash rate on June 7, with 25 basis point increases at most subsequent meetings in 2022 reaching 1.25% at the end of the year. In 2023 we expect three further increases of 25 basis points with the cash rate peaking at 2% in June.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.